[Freudian]

Assuming everything you say is true I think Partys concern is this:

You and this former disgruntled former employee are working together to scam Party. If you don't report his theft to the police, what is there that prevents this guy and you working together?

I still get the feeling that this is a gnome account and when your sisters involvement went from answering the phone and saying she plays poker to going to the police and file a charge she said no.